Cicero, Ill., Fraud Figure Gets 12 Years

Published 7:00 pm, Sunday, January 26, 2003

The last of seven people convicted in a scheme to steal $12 million from the town of Cicero through a bogus insurance company was sentenced to 12 years and seven months in federal prison.

U.S. District Judge John Grady also ordered John LaGiglio to pay $8.3 million in restitution and serve five years under supervised release.

LaGiglio, 52, was an executive of Specialty Risk Consultants, described by prosecutors as a mob-controlled firm that handled the town's insurance claims.

He was found guilty of racketeering and tax conspiracy, wire and mail fraud, money laundering, bank fraud and filing a false tax return.

LaGiglio apologized to the government and the people of Cicero. He will begin serving his sentence immediately.

The alleged mastermind of the plot, reputed crime boss Michael Spano Sr., was sentenced this month to more than 12 years in prison. LaGiglio's wife was convicted of tax fraud in the case and sentenced to 3 1/2 years in prison.